STOCK TITAN

MIMEDX Announces Third Quarter 2024 Operating and Financial Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

MIMEDX (MDXG) reported Q3 2024 net sales of $84 million, up 3% year-over-year, with GAAP net income of $8 million and earnings per share of $0.05. The company achieved an Adjusted EBITDA of $18 million, representing a 22% margin. Growth was driven by AMNIOEFFECT® and EPIEFFECT® products, along with the newly launched HELIOGEN® product. Gross margin remained stable at 81.8%. The company raised its 2024 net sales growth expectations to high single-digits and maintains its Adjusted EBITDA margin target above 20%.

MIMEDX (MDXG) ha riportato per il terzo trimestre del 2024 vendite nette di 84 milioni di dollari, in aumento del 3% rispetto all'anno precedente, con un utile netto GAAP di 8 milioni di dollari e un utile per azione di 0,05 dollari. L'azienda ha raggiunto un EBITDA rettificato di 18 milioni di dollari, che rappresenta un margine del 22%. La crescita è stata trainata dai prodotti AMNIOEFFECT® ed EPIEFFECT®, insieme al nuovo prodotto lanciato HELIOGEN®. Il margine lordo è rimasto stabile all'81,8%. L'azienda ha aumentato le aspettative di crescita delle vendite nette per il 2024, portandole a un tasso a una cifra alta e mantiene il suo obiettivo di margine EBITDA rettificato superiore al 20%.

MIMEDX (MDXG) reportó ventas netas de 84 millones de dólares en el tercer trimestre de 2024, un aumento del 3% en comparación con el año anterior, con un ingreso neto GAAP de 8 millones de dólares y ganancias por acción de 0,05 dólares. La compañía logró un EBITDA ajustado de 18 millones de dólares, representando un margen del 22%. El crecimiento fue impulsado por los productos AMNIOEFFECT® y EPIEFFECT®, junto con el recién lanzado producto HELIOGEN®. El margen bruto se mantuvo estable en el 81,8%. La empresa elevó sus expectativas de crecimiento de ventas netas para 2024 a un dígito alto y mantiene su objetivo de margen EBITDA ajustado por encima del 20%.

MIMEDX (MDXG)는 2024년 3분기에 8,400만 달러의 순 매출을 기록했으며, 전년 대비 3% 증가하였고, GAAP 기준 순이익은 800만 달러, 주당 순이익은 0.05달러로 나타났습니다. 회사는 1,800만 달러의 조정된 EBITDA를 달성하여 22%의 마진을 나타냈습니다. 성장은 AMNIOEFFECT®와 EPIEFFECT® 제품, 그리고 새로 출시된 HELIOGEN® 제품에 의해 주도되었습니다. 총 마진은 81.8%로 안정적이었습니다. 회사는 2024년 순 매출 성장 기대치를 높은 단일 자릿수 수준으로 상향 조정하였으며, 20% 이상의 조정된 EBITDA 마진 목표를 유지하고 있습니다.

MIMEDX (MDXG) a rapporté pour le troisième trimestre 2024 des ventes nettes de 84 millions de dollars, en hausse de 3 % par rapport à l'année précédente, avec un bénéfice net GAAP de 8 millions de dollars et un bénéfice par action de 0,05 dollar. La société a réalisé un EBITDA ajusté de 18 millions de dollars, représentant une marge de 22 %. La croissance a été soutenue par les produits AMNIOEFFECT® et EPIEFFECT®, ainsi que par le nouveau produit lancé HELIOGEN®. La marge brute est restée stable à 81,8 %. L'entreprise a relevé ses prévisions de croissance des ventes nettes pour 2024 à un chiffre unique élevé et maintient son objectif de marge EBITDA ajustée au-dessus de 20 %.

MIMEDX (MDXG) berichtete im dritten Quartal 2024 von Nettoverkäufen in Höhe von 84 Millionen Dollar, was einem Anstieg von 3 % im Vergleich zum Vorjahr entspricht, mit einem GAAP-Nettoeinkommen von 8 Millionen Dollar und einem Gewinn pro Aktie von 0,05 Dollar. Das Unternehmen erzielte ein bereinigtes EBITDA von 18 Millionen Dollar, was eine Marge von 22 % darstellt. Das Wachstum wurde durch die Produkte AMNIOEFFECT® und EPIEFFECT® sowie das neu eingeführte Produkt HELIOGEN® vorangetrieben. Die Bruttomarge blieb stabil bei 81,8 %. Das Unternehmen hat seine Erwartungen für das Umsatzwachstum 2024 auf hohe einstellig Prozentpunkte angehoben und hält seine Zielvorgabe für die bereinigte EBITDA-Marge über 20 % aufrecht.

Positive
  • Net sales increased 3% YoY to $84 million
  • Strong Adjusted EBITDA margin of 22%
  • Healthy gross margin of 81.8%
  • Cash position increased to $89 million
  • Raised 2024 net sales growth guidance to high single-digits
Negative
  • Slight decline in net income from $9M to $8M YoY
  • Increased SG&A expenses from $53M to $54M
  • Commercial challenges due to sales team turnover
  • Decline in AXIOFILL® sales

Insights

MIMEDX delivered a solid Q3 with several positive indicators. $84 million in revenue represents 3% YoY growth, while maintaining a healthy 21.6% Adjusted EBITDA margin. The company's strong cash position of $89 million and net cash increase of $20 million sequentially demonstrates robust operational efficiency.

Key positives include improved gross margins despite amortization impacts, driven by better manufacturing efficiency and product mix. The raised guidance to high single-digit growth shows management's confidence in near-term execution. However, sales team turnover and reimbursement challenges present ongoing risks.

The 81.8% gross margin and $18 million Adjusted EBITDA highlight strong operational fundamentals. The company's strategic focus on evidence-based research and new product launches (HELIOGEN) positions it well for future growth in the expanding placental tissue market.

Net Sales of $84 million Grew 3% Year-Over-Year for the Third Quarter
Third Quarter GAAP Net Income and Earnings Per Share were $8 Million and $0.05, Respectively
Third Quarter Adjusted EBITDA was $18 Million, or 22% of Net Sales
Raises 2024 Net Sales Growth Expectations to the High Single-Digits
Management to Host Conference Call Today, October 30, 2024, at 4:30 PM ET

MARIETTA, Ga., Oct. 30, 2024 (GLOBE NEWSWIRE) -- MiMedx Group, Inc. (Nasdaq: MDXG) (“MIMEDX” or the “Company”), today announced operating and financial results for the third quarter 2024.

Joseph H. Capper, MIMEDX Chief Executive Officer, commented, "Our solid third quarter 2024 results include total net sales growth of 3% year-over-year and an Adjusted EBITDA margin of 22%, both compared to tough comparisons in the third quarter of 2023. During the quarter, we strengthened our commercial organization, filling roles throughout the country, and continued to execute on our strategic priorities, which I believe will put us in the best position to lead this space over the long term. This performance, along with the associated free cash flow generation, demonstrates the strength of our Company even as we weather reimbursement-related market disruption. As a result, we now expect our 2024 net sales growth will be on the upper end of our prior stated guidance range of mid-to-high single-digits."

Mr. Capper continued, "During the quarter, we continued conversations with CMS, lawmakers and the MACs, leaving us optimistic that change is coming to address the runaway Medicare spend in the private office and associated care settings, which is now over $1 billion per month.   As we have known for some time, and The New York Times recently pointed out, the potential for placental tissue products is enormous. Our unwavering commitment to research and evidence production designed to support expanded utilization of our products puts us in an advantageous position as more clinicians seek to incorporate placental allografts into their practices."

    
 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Net Income$8,095  $8,534  $34,981  $4,751 
Non-GAAP Adjustments:       
Depreciation expense 580   653   1,715   2,054 
Amortization of intangible assets 575   190   1,336   570 
Interest (income) expense, net (278)  1,680   1,409   4,864 
Income tax provision 3,541   591   11,485   569 
Share-based compensation 3,810   4,389   12,240   12,793 
Investigation, restatement and related expenses 649   (38)  (8,741)  4,652 
Impairment of intangible assets 298      352    
Transaction related expenses 95      651    
Strategic legal and regulatory expenses 1,035      1,666    
Expenses related to disbanding of Regenerative Medicine Business Unit (217)  208   (421)  5,599 
Reorganization expenses    1,412      1,412 
Adjusted EBITDA$18,183  $17,619  $56,673  $37,264 
Adjusted EBITDA margin 21.6%  21.6%  22.1%  15.9%
                
                

Third Quarter 2024 Results Discussion1

Net Sales

MIMEDX reported net sales for the three months ended September 30, 2024, of $84 million, compared to $82 million for the three months ended September 30, 2023, an increase of 3%. The increase was primarily driven by growing contributions from its AMNIOEFFECT® and EPIEFFECT® products and initial contributions associated with sales of our recently launched HELIOGEN® product, partially offset by commercial challenges associated with recent turnover of certain of our sales team and customers, declines in sales of AXIOFILL® and the conclusion of sales of our dental product during the third quarter 2023.

Gross Profit and Margin

Gross profit for the three months ended September 30, 2024, was $69 million, an increase of $2 million as compared to the prior year period. Gross margin for the three months ended September 30, 2024 was 81.8%, compared to 81.9% in the prior year period. While third quarter 2024 gross margin was negatively impacted by the amortization of distribution rights stemming from the TELA Bio, Inc. and Regenity Biosciences agreements entered into during the first quarter of 2024, this impact was offset by favorable product mix and continued execution on improvements in manufacturing scale up, including reductions in scrap and improvements in yield.

Operating Expenses

Selling, general and administrative ("SG&A") expenses for the three months ended September 30, 2024, were $54 million compared to $53 million for the three months ended September 30, 2023. The increase in SG&A was driven by year-over-year increases in compensation related to higher salary and benefit costs from merit raises, promotions, as well as commissions driven by increases in sales volumes and proportionally higher sales through sales agents. Incremental spend from legal and regulatory disputes in the current period also contributed to the increase.

Research and development ("R&D") expenses for the three months ended September 30, 2024, were $3 million compared to $3 million for the three months ended September 30, 2023. R&D spend in the quarter was driven, in part, by the randomized controlled trial for EPIEFFECT and ongoing investments in the development of future products in our pipeline.

Investigation, restatement and related expense for the three months ended September 30, 2024, was $1 million compared to an immaterial benefit for the three months ended September 30, 2023. The benefit in the third quarter 2023 resulted from various settlements, including those with former officers and other matters.

Net income from continuing operations for the three months ended September 30, 2024 was $8 million compared to $9 million for the three months ended September 30, 2023.

Cash and Cash Equivalents

As of September 30, 2024, the Company had $89 million of cash and cash equivalents compared to $82 million as of December 31, 2023. As of September 30, 2024, our cash position, net of debt on our balance sheet, was $70 million, representing a sequential increase of $20 million.

Financial Outlook
For 2024, MIMEDX expects net sales growth to be in the high single-digits as a percentage compared to 2023. 2024 Adjusted EBITDA margin is expected to be above 20% on a full year basis.

Longer-term, the Company continues to expect to achieve annual net sales growth in the low double-digits as a percentage with an adjusted EBITDA margin above 20%.

Conference Call and Webcast

MIMEDX will host a conference call and webcast to review its second quarter 2024 results on Wednesday, October 30, 2024, beginning at 4:30 p.m., Eastern Time. The call can be accessed using the following information:

Webcast: Click here
U.S. Investors: 877-407-6184
International Investors: 201-389-0877
Conference ID: 13748866

A replay of the webcast will be available for approximately 30 days on the Company’s website at www.mimedx.com following the conclusion of the event.

Important Cautionary Statement

This press release includes forward-looking statements. Statements regarding: (i) future sales or sales growth; (ii) our 2024 and longer term financial goals and expectations for future financial results, including levels of net sales, Adjusted EBITDA, and Adjusted EBITDA margin; (iii) our expectations regarding the placental tissue market (iv) our expectations regarding Medicare spending;   and (v) continued growth in different care settings, including regarding placental allografts. Additional forward-looking statements may be identified by words such as "believe," "expect," "may," "plan," “goal,” “outlook,” "potential," "will," "preliminary," and similar expressions, and are based on management's current beliefs and expectations.

Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ from expectations include: (i) future sales are uncertain and are affected by competition, access to customers, patient access to healthcare providers, the reimbursement environment and many other factors; (ii) the Company may change its plans due to unforeseen circumstances; (iii) the results of scientific research are uncertain and may have little or no value; (iv) our ability to sell our products in other countries depends on a number of factors including adequate levels of reimbursement, market acceptance of novel therapies, and our ability to build and manage a direct sales force or third party distribution relationship; (v) the effectiveness of amniotic tissue as a therapy for particular indications or conditions is the subject of further scientific and clinical studies; (vi) we may alter the timing and amount of planned expenditures for research and development based on regulatory developments; (vii) Medicare spending; and (viii) changes in the size of the addressable market for our products. The Company describes additional risks and uncertainties in the Risk Factors section of its most recent annual report and quarterly reports filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release and the Company assumes no obligation to update any forward-looking statement.

About MIMEDX

MIMEDX is a pioneer and leader focused on helping humans heal. With more than a decade of helping clinicians manage chronic and other hard-to-heal wounds, MIMEDX is dedicated to providing a leading portfolio of products for applications in the wound care, burn, and surgical sectors of healthcare. The Company’s vision is to be the leading global provider of healing solutions through relentless innovation to restore quality of life. For additional information, please visit www.mimedx.com.

Contact:
Matt Notarianni
Investor Relations
470.304.7291
mnotarianni@mimedx.com

Selected Unaudited Financial Information

 
MiMedx Group, Inc.
Condensed Consolidated Balance Sheets
(in thousands) Unaudited
 September 30,
2024
 December 31,
2023
ASSETS   
Current assets:   
Cash and cash equivalents$88,801 $82,000
Accounts receivable, net 54,030  53,871
Inventory 24,249  21,021
Prepaid expenses 2,907  5,624
Other current assets 2,152  1,745
Total current assets 172,139  164,261
    
Property and equipment, net 6,451  6,974
Right of use asset 2,843  2,132
Deferred tax asset, net 30,636  40,777
Goodwill 19,441  19,441
Intangible assets, net 11,201  5,257
Other assets 1,180  205
Total assets$243,891 $239,047
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities:   
Current portion of long term debt$1,000 $1,000
Accounts payable 6,924  9,048
Accrued compensation 20,170  22,353
Accrued expenses 8,396  9,361
Current portion of Profit Share Payments 2,860  
Current liabilities of discontinued operations   1,352
Other current liabilities 2,591  2,894
Total current liabilities 41,941  46,008
Long term debt, net 18,018  48,099
Other liabilities 2,924  2,223
Total liabilities$62,883 $96,330
Total stockholders' equity 181,008  142,717
Total liabilities and stockholders’ equity$243,891 $239,047
      
      


 
MiMedx Group, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts) Unaudited
 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
        
Net sales$84,057  $81,712  $255,972  $234,645 
Cost of sales 15,322   14,790   43,164   40,792 
Gross profit 68,735   66,922   212,808   193,853 
        
Operating expenses:       
Selling, general and administrative 53,516   52,571   164,044   156,773 
Research and development 2,918   3,075   8,770   10,232 
Investigation, restatement and related 649   (38)  (8,741)  4,652 
Amortization of intangible assets 192   190   572   570 
Impairment of intangible assets 298      352    
Operating income 11,162   11,124   47,811   21,626 
        
Other expense, net       
Interest income (expense), net 278   (1,680)  (1,409)  (4,864)
Other expense, net (21)  (11)  (357)  (42)
Income from continuing operations before income tax provision 11,419   9,433   46,045   16,720 
Income tax provision (3,541)  (591)  (11,485)  (569)
Net income from continuing operations 7,878   8,842   34,560   16,151 
Income (loss) from discontinued operations, net of tax 217   (308)  421   (11,400)
Net income$8,095  $8,534  $34,981  $4,751 
        
Net income available to common stockholders from continuing operations$7,878  $7,069  $34,560  $10,967 
        
Basic net income per common share:       
Continuing operations 0.05   0.06   0.24   0.09 
Discontinued operations          (0.09)
Basic net income per common share$0.05  $0.06  $0.24  $ 
        
Diluted net income per common share:       
Continuing operations$0.05  $0.06  0.23  0.09 
Discontinued operations          (0.09)
Diluted net income per common share$0.05  $0.06  $0.23  $ 
        
Weighted average common shares outstanding - basic 146,958,986   116,298,146   147,008,732   115,528,067 
Weighted average common shares outstanding - diluted 148,373,631   149,773,706   148,964,788   116,893,270 
                
                


 
MiMedx Group, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands) Unaudited
 Nine Months Ended
September 30,
  2024   2023 
Net cash flows provided by operating activities from continuing operations$48,347  $25,667 
Net cash flows used in operating activities of discontinued operations (931)  (9,149)
Net cash flows provided by operating activities$47,416  $16,518 
Net cash flows used in investing activities (6,816)  (1,674)
Net cash flows used in financing activities (33,799)  370 
Net change in cash$6,801  $15,214 
        
        

Reconciliation of Non-GAAP Measures

In addition to our GAAP results, we provide certain non-GAAP measures including Adjusted EBITDA, related margins, Free Cash Flow, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, and Adjusted Earnings Per Share ("Adjusted EPS"). We believe that the presentation of these measures provides important supplemental information to management and investors regarding our performance. These measures are not a substitute for GAAP measures. Company management uses these non-GAAP measures as aids in monitoring our ongoing financial performance from quarter-to-quarter and year-to-year on a regular basis and for benchmarking against comparable companies.

These non-GAAP financial measures reflect the exclusion of the following items:

  • Share-based compensation expense - expense recognized related to awards to employees and our board of directors pursuant to our share-based compensation plans. This expense is reflected amongst cost of sales, research and development expense, and selling, general, and administrative expense in the unaudited condensed consolidated statements of operations.
  • Investigation, restatement, and related (benefit) expense - expenses incurred toward the legal defense of the Company and advanced on behalf of certain former officers and directors, net of negotiated reductions and settlements of amounts previously advanced, related to certain legal matters. This expense is reflected in the line of the same name in our unaudited condensed consolidated statements of operations.
  • Impairment of intangible assets - reflects the impairment of intangibles. This expense is reflected in the line of the same name in our unaudited condensed consolidated statements of operations.
  • Transaction-related expenses - reflects expenses incrementally incurred resulting from the consummation of material strategic transactions or the integration of acquired assets or operations into our core business. With respect to the three and nine months ended September 30, 2024, this relates to our acquisition and integration of exclusive distribution rights to HELIOGEN.
  • Strategic legal and regulatory expenses - With respect to the three and nine months ended September 30, 2024, this relates to litigation and regulatory expenses. Litigation expenses incurred relate to suits filed against former employees and their employers for violation of non-compete and non-solicitation agreements and related matters. Regulatory expenses relate to legal fees incurred stemming from action taken against the United States Food & Drug Administration ("FDA") surrounding the designation of one of our products.
  • Loss on extinguishment of debt - reflects the excess of cash paid to extinguish debt over the carrying value of the debt on our balance sheet upon the repayment and termination of a loan agreement. With respect to the nine months ended September 30, 2024, this relates to the repayment and termination of the Company's loan agreement with Hayfin. Amounts in this line reflect (i) prepayment premium paid and (ii) write-offs of unamortized original issue discount and deferred financing costs.
  • Expenses related to the Disbanding of Regenerative Medicine - incremental expenses recognized or incurred directly as a result of our announcement to disband our Regenerative Medicine segment.
  • Amortization of acquired intangible assets - reflects amortization expense recognized solely related to assets which were acquired as part of a transaction. With respect to the three and nine months ended September 30, 2024, this relates solely to the amortization of distribution rights stemming from the TELA Bio, Inc. and Regenity Biosciences agreements entered into during the first quarter of 2024. These expenses are reflected in cost of sales in our consolidated statements of operations.
  • Reorganization expenses - reflects severance expense incurred arising from separations from certain officers of the Company.
  • Income Tax Adjustment - for purposes of calculating Adjusted Net Income and Adjusted Earnings Per Share, reflects our expectation of a long-term effective tax rate, which is normalized and balance sheet-agnostic. Actual reporting tax expense will be based on GAAP earnings, and may differ from the expected long-term effective tax rate due to a variety of factors, including the tax treatment of various transactions included in GAAP net income and other reconciling items that are excluded in determining Adjusted Net Income and Adjusted EPS. The actual long-term normalized effective tax rate was 25% for each of the quarters ended September 30, 2024 and 2023.

Adjusted EBITDA and Adjusted EBITDA margin

Adjusted EBITDA consists of GAAP net income excluding: (i) depreciation, (ii) amortization of intangibles, (iii) interest (income) expense, net, (iv) income tax provision, (v) share-based compensation, (vi) investigation, restatement and related expenses, (vii) expenses related to disbanding of the Regenerative Medicine business unit, (viii) strategic legal and regulatory expenses, (ix) transaction-related expenses, (x) impairment of intangible assets, and (xi) reorganization expenses.

Please refer to the tables at the beginning of this press release for reconciliation to GAAP net income (loss).

Adjusted Net Income

Adjusted Net Income provides a view of our operating performance, exclusive of certain items which are non-recurring or not reflective of our core operations.

Adjusted Net Income is defined as GAAP net income plus (i) loss on extinguishment of debt, (ii) investigation restatement and related expenses, (iii) impairment of intangible assets, (iv) amortization of acquired intangible assets, (v) transaction related expenses, (vi) strategic legal and regulatory expenses, and (vii) expenses related to disbanding of our Regenerative Medicine business unit, and (viii) the long-term effective income tax rate adjustment.

A reconciliation of GAAP net income to Adjusted Net Income appears in the table below (in thousands):

    
 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Net income$8,095  $8,534  $34,981  $4,751 
Loss on extinguishment of debt       1,401    
Investigation, restatement and related expenses 649   (38)  (8,741)  4,652 
Impairment of intangible assets 298      352    
Amortization of acquired intangible assets 383      765    
Transaction related expenses 95      651    
Strategic legal and regulatory expenses 1,035      1,666    
Expenses related to disbanding of Regenerative Medicine Business Unit (217)  208   (421)  5,599 
Reorganization expenses    1,412      1,412 
Long-term effective income tax rate adjustment 71   (2,086)  950   (3,677)
Adjusted net income$10,409  $8,030  $31,604  $12,737 
                
                

A reconciliation of various line items included in our GAAP unaudited condensed consolidated statements of operations to Adjusted Net Income for the three and nine months ended September 30, 2024 and 2023 are presented in the tables below (in thousands):

  
 Three Months Ended September 30, 2024
 Gross Profit Selling, General & Administrative Expense Research and Development Expense Net Income
Reported GAAP Measure$68,735  $53,516  $2,918 $8,095 
Investigation, restatement and related expenses         649 
Impairment of intangible assets         298 
Amortization of acquired intangible assets 383        383 
Transaction-related expenses    (36)    95 
Strategic legal and regulatory expenses    (1,035)    1,035 
Expenses related to disbanding of Regenerative Medicine Business Unit         (217)
Long-term effective income tax rate adjustment         71 
Non-GAAP Measure$69,118  $52,445  $2,918 $10,409 
        
Gross Profit Margin 81.8%      
Gross Profit Margin, as adjusted 82.2%      
          


 Three months ended September 30, 2023
 Gross Profit Selling, General & Administrative Expense Research and Development Expense Net Income
Reported GAAP Measure$        66,922          $        52,571          $        3,075         $        8,534         
Investigation, restatement and related expenses         —                   —                   —                  (38)
Expenses related to disbanding of Regenerative Medicine Business Unit         —                   —                   —                  208         
Reorganization expenses         —                   (1,412)          —                  1,412         
Long-term effective income tax rate adjustment         —                   —                   —                  (2,086)
Non-GAAP Measure$        66,922          $        51,159          $        3,075         $        8,030         
        
Gross Profit Margin         81.9        %      
Gross Profit Margin, as adjusted         81.9        %      
          


 Nine Months Ended September 30, 2024
 Gross Profit Selling, General & Administrative Expense Research and Development Expense Net Income
Reported GAAP Measure$212,808  $164,044  $8,770 $34,981 
Loss on extinguishment of debt         1,401 
Investigation, restatement and related expenses         (8,741)
Impairment of intangible assets         352 
Amortization of acquired intangible assets 765        765 
Transaction related expenses    (522)    651 
Strategic legal and regulatory expenses    (1,666)    1,666 
Expenses related to disbanding of Regenerative Medicine Business Unit         (421)
Long-term effective income tax rate adjustment         950 
Non-GAAP Measure$213,573  $161,856  $8,770 $31,604 
        
Gross Profit Margin 83.1%      
Gross Profit Margin, as adjusted 83.4%      
          


 Nine Months Ended September 30, 2023
 Gross Profit Selling, General & Administrative Expense Research and Development Expense Net Income
Reported GAAP Measure$193,853  $156,773  $10,232 4,751 
Investigation, restatement and related expenses         4,652 
Expenses related to disbanding of Regenerative Medicine Business Unit         5,599 
Reorganization expenses    (1,412)    1,412 
Long-term effective income tax rate adjustment         (3,677)
Non-GAAP Measure$193,853  $155,361  $10,232 $12,737 
        
Gross Profit Margin 82.6%      
Gross Profit Margin, as adjusted 82.6%      
          
          

Adjusted Earnings Per Share

Adjusted Earnings Per Share is intended to provide a normalized view of earnings per share by removing items that may be irregular, one-time, or non-recurring from net income. This enables us to identify underlying trends in our business that could otherwise be masked by such items. Adjusted Earnings Per Share consists of GAAP diluted net income (loss) per common share including adjustments for: (i) loss on extinguishment of debt, (ii) investigation restatement and related expenses, (iii) impairment of intangible assets, (iv) amortization of acquired intangible assets, (v) transaction related expenses, (vi) strategic legal and regulatory expenses, (vii) expenses related to disbanding of our Regenerative Medicine business unit, (viii) reorganization expenses, (ix) the long-term effective income tax rate adjustment, and (x) the effect of antidilution. The effect of antidilution reflects the changes resulting from the removal of the dilutive impact of convertible securities which were dilutive for purposes of calculating GAAP net income per common share, but are antidilutive for non-GAAP purposes.

A reconciliation of GAAP diluted earnings per share to Adjusted Earnings Per Share appears in the table below (per diluted share):

    
 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024  2023   2024   2023 
GAAP net income per common share - diluted$0.05 $0.06  $0.23  $0.00 
Loss on extinguishment of debt 0.00  0.00   0.01   0.00 
Investigation, restatement and related (benefit) expense 0.01  0.00   (0.06)  0.04 
Impairment of intangible assets 0.00  0.00   0.00   0.00 
Amortization of acquired intangible assets 0.00  0.00   0.01   0.00 
Transaction related expenses 0.00  0.00   0.00   0.00 
Strategic legal and regulatory expenses 0.01  0.00   0.01   0.00 
Expenses related to disbanding of Regenerative Medicine business unit 0.00  0.01   0.00   0.04 
Reorganization expenses 0.00  0.01   0.00   0.01 
Long-term effective income tax rate adjustment 0.00  (0.02)  0.01   (0.03)
Effects of antidilution 0.00  (0.01)  0.00   0.00 
Adjusted Earnings Per Share$0.07 $0.05  $0.21  $0.06 
        
GAAP weighted average common shares outstanding - diluted 148,373,631  149,773,706   148,964,788   116,893,270 
Effects of antidilution   (30,445,997)      
Weighted average common shares outstanding - adjusted 148,373,631  119,327,709   148,964,788   116,893,270 
               
               

Free Cash Flow

Free Cash Flow is intended to provide a measure of our ability to generate cash in excess of capital investments. It provides management with a view of cash flows which can be used to finance operational and strategic investments.

Free Cash Flow is defined as net cash provided by operating activities less capital expenditures, including purchases of equipment.

A reconciliation of GAAP net cash flows provided by operating activities to Free Cash Flow appears in the table below (in thousands):

    
 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Net cash flows provided by operating activities$19,624  $12,791  47,416  16,518 
Capital expenditures, including purchases of equipment (171)  (628)  (1,420)  (1,560)
Free Cash Flow$19,453  $12,163  $45,996  $14,958 
                
                

Net Sales by Product Category by Quarter

Below is a summary of net sales by product category (in thousands):

    
 2023 2024
 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Wound$45,206 $53,318 $51,156 $55,980 $57,049 $57,547 $55,052
Surgical 26,470  27,939  30,556  30,852  27,660  29,660  29,005
Net sales$71,676 $81,257 $81,712 $86,832 $84,709 $87,207 $84,057
                     

 

 

________________________
1 The following discussion of the Company's third quarter 2024 results are made on a "continuing operations basis" and exclude the historical costs of the Regenerative Medicine business unit, which was disbanded beginning in June 2023. For a full discussion of the impact of these discontinued operations, please refer to our Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the three months ended September 30, 2024.


FAQ

What was MDXG's revenue growth in Q3 2024?

MIMEDX reported a 3% year-over-year revenue growth in Q3 2024, reaching $84 million in net sales.

What was MDXG's Adjusted EBITDA margin in Q3 2024?

MIMEDX achieved an Adjusted EBITDA margin of 22% in Q3 2024, with Adjusted EBITDA reaching $18 million.

What is MDXG's updated sales guidance for 2024?

MIMEDX raised its 2024 net sales growth expectations to high single-digits, up from its previous guidance of mid-to-high single-digits.

What was MDXG's cash position as of September 30, 2024?

MIMEDX had $89 million in cash and cash equivalents, with a net cash position of $70 million after accounting for debt.

MiMedx Group, Inc

NASDAQ:MDXG

MDXG Rankings

MDXG Latest News

MDXG Stock Data

1.37B
143.16M
2.45%
68.18%
2.72%
Biotechnology
Surgical & Medical Instruments & Apparatus
Link
United States of America
MARIETTA